BritAbroadTax

We also have an employee that will be working fully remote abroad (Canada). They will apply for an NT tax code and will write to HMRC to get a liability decision on whether they will be exempt from NI contributions as they are tax resident in Canada. We have no presence/establishment in Canada but plan to keep paying/employing them through UK employe/PAYE. The employee is a UK citizen (has Canadian permanent residency also) and has worked with the company for several years in the UK. They are deciding to move themselves, but with our agreement. Reading the National Insurance Guidelines (NIM33425 - https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim33425) would suggest they are still liable for UK NIC's if the employee is "posted" for no longer than 5 years and a certificate can be applied for. We would still seek a liability decision from HMRC to be sure. Does this seem like a correct approach? If this decision came back as they are not liable for NI contributions in the UK, we would then not make deductions and it would be the employees responsibility to pay the relevant authorities in Canada is our understanding. Thanks in advance - your replies have been really helpful.

I have a similar situation to this and want to know more. If the decision means the employee is not liable will the employer need to use the NX NIC code in order to not make any deductions? Similarly, if the decision finds the employee/employer are still liable for NIC contributions, will the employee be able to get a certificate showing proof of liability? This particular employee would be tax resident in Canada (living there) but working for a UK company on UK payroll/employment contract. Thanks.